If the cost of capital is $80 per hour, the wage paid to employees is $15 per hour, the marginal product of capital is 16 units per hour, and the marginal product of labor is 5 units per hour, to minimize its costs, the firm should ________.

A) increase the amount of labor and capital used
B) not change the amount of labor or capital
C) decrease the amount of labor used and increase the amount of capital used
D) increase the amount of labor used and decrease the amount of capital used


D) increase the amount of labor used and decrease the amount of capital used

Anthropology & Archaeology

You might also like to view...

There are a number of different ways that one can learn things. Both humans and other animals learn by trial-and-error and by social learning. The form of learning that is uniquely human and that provides the basis for the capacity for culture is known as

A. moment learning B. critical learning C. symbolic learning D. inventive learning

Anthropology & Archaeology

How do anthropologists define the term "shaman"?

What will be an ideal response?

Anthropology & Archaeology

According to Stryker in "Ethnography in the Public Interest,"

a. overcrowding was not a problem at the prisons she studied. b. women were very well paid for the work they did in the prison. c. women sometimes faked illness to get faster medical attention. d. women had equal and unfettered access to adequate medical care.

Anthropology & Archaeology

Which of the following is an historically nomadic patriarchal group?

a. ?Bedouin b. ?!Kung San c. ?Imperial China d. Hua

Anthropology & Archaeology